MCX - Futures Contracts on Canada Carbon Dioxide Equivalent (CO₂e) Units

• Futures contracts on Canada carbon dioxide equivalent (CO2e) units (MCX) - Delisting

Trading Unit

Each contract is equal to 100 Canada carbon dioxide equivalent (CO₂e) units. Each carbon dioxide equivalent (CO₂e) unit, as defined by the Government of Canada, is an entitlement to emit one metric ton of carbon dioxide equivalent (CO₂e).

Contract Expiry

Quarterly expiries (starting with June 2011)

Price Quotation

Canadian dollars and cents per metric ton

Minimum Price Fluctation

C$0.01 per metric ton = C$1 per contract

Last Trading Day / Expiry

Trading ceases at 4:00 p.m. (Montréal time) on the third business day preceding the last business day of the contract expiry.

Contract Type

Physical settlement

Daily Settlement Price

The daily settlement price is determined in accordance with the procedure established by the Bourse to that effect.

Physical Settlement

Contracts are physically settled by the transfer of Canada carbon dioxide equivalent (CO₂e) units to the designated registry via the clearing corporation. A delivery notice shall be submitted before such time set by the clearing corporation on the last trading day. Physical settlement shall be completed on the third business day following the submission of the delivery notice.

Eligible Canada carbon dioxide equivalent (CO₂e) units for physical settlement are:
i. regulated emitters; and/or
ii. offset credits.

In the case of a shortage of Canada carbon dioxide equivalent (CO₂e) units or in the event that the designated registry is not in place at the expiration of the contract, the contract will be settled in cash.

Alternative Delivery Procedure

An alternative delivery procedure is available to buyers and sellers who have been matched by the clearing corporation subsequent to the termination of trading in the expired contract. If buyer and seller agree to complete the physical settlement under terms different from those prescribed by the clearing corporation, they may proceed on that basis after submitting a confirmation of agreement to such alternative procedure to the clearing corporation. A copy of this confirmation must also be transmitted to the Regulatory Division of the Bourse.

Exchange for Physical / Exchange for Risk / Substitution of Over-The-Counter Derivative Instruments for Futures Contracts

Exchange for Physical (EFP) and Exchange for Risk (EFR) facilities are available in accordance with the Rules of the Bourse. An EFP and an EFR work on the basis that the parties involved in the transaction agree to exchange a physical position or over-the-counter (OTC) position for an on-exchange futures contract position.

A substitution of over-the-counter derivative instruments for futures contracts works on the basis that the parties involved in the transaction agree to substitute an over-the-counter (OTC) derivatives position for an on-exchange futures contract position.

Reporting Level

250 contrats

Minimum Margin Requirements

Information on minimum margin requirements can be obtained from the Exchange as they are subject to periodic changes.

Daily Price Limit

None

Trading Hours

9:30 a.m. to 4:00 p.m. (Montréal time)

Clearing corporation

Canadian Derivatives Clearing Corporation (CDCC)

Symbol

MCX